The price of Uniswap (UNI) has been experiencing difficulties lately, falling by almost 5% in the last 24 hours and by 5.24% in the last week, despite the recent growth of bitcoin. The recent decline highlights the weakness of $UNI
, and technical indicators point to a cautious outlook.
Despite the fact that the EMA lines still show a bullish structure, a decrease in the price below the short-term EMA signals a weakening of purchasing pressure. A potential reversal is still possible, but caution should be exercised as the current trend remains vulnerable to further declines.
The UNI RSI indicator is in the neutral zone
On November 7, the UNI relative Strength index (#RSI ) reached 85 points, which was caused by a sharp price increase of 50% in just 24 hours. Since reaching this high, the RSI has been gradually declining and currently stands at 43.32. The RSI is an indicator that is used to assess momentum by measuring speed and price changes, helping to determine whether an asset is overbought or oversold.
As a rule, an RSI above 70 signals that an asset may be overbought, and an RSI below 30 indicates potential oversold.
Since the UNI RSI is currently at 43.32, the indicator indicates that the recent momentum has weakened significantly. This level is in the middle range, reflecting neither overbought nor oversold, but rather indicating a balanced market condition.
This means that the price of UNI can stabilize after a sharp rise, and then either consolidate or continue to grow depending on changes in demand for buying or selling.
The Uniswap ADX Index Shows that the current trend is Not strong
Currently, the ADX UNI index stands at 19, which is significantly lower than more than 40 just a week ago. The Average Direction Index (ADX) measures the strength of a trend without indicating its direction.
As a rule, an ADX value above 25 indicates a strong trend, while values below 20 indicate a lack of trend or weak dynamics. The sharp drop from over 40 to 19 signals that the strength of the recent UNI trend has weakened significantly.
If a bearish reversal occurs, the UNI price may test support levels around $7.5 and $7.1 and potentially fall to $6.6. However, judging by the current value of the ADX, the downtrend is not particularly strong. This leaves room for a possible U-turn.
If the trend changes towards growth, the UNI price may first overcome the resistance at $8.7. If this level is overcome, the next target will be $9.6, which means a potential price increase of 14%.